The Travis County DA's office has launched a criminal investigation of State Farm, the massive insurer, regarding its handling of thousands of insurance claims following Hurricane Ike. Now, Senator Rodney Ellis is demanding that the Texas Department of Insurance ("TDI") reopen its investigation of State Farm and its Texas subsidiary, State Farm Lloyds. "Given that law enforcement is now investigating State Farm for the exact same concerns I raised with you eleven months ago, this problem can no longer be ignored," wrote Senator Ellis in a letter to TDI's Commissioner, Eleanor Kitzman. Kitzman responded by drafting a public letter to the Texas Legislature. "Given the severity of the accusations made by the District Attorney, TDI is carefully considering its options for further regulatory action in this matter," wrote Kitzman.
Justice was served to a Nebraska-based insurance company last week when a jury awarded 90-year-old, Arlene Hull, $34 million to compensate her for the insurance company's wrongful denial of benefits under her policy.